Tax Book 2023

Chapter 30 Solved Past Papers Income Tax Numericals of ICMAP Stage IV - (2003 to 2018)

Pay Rs. 60,000 per month

House rent allowance Rs. 27,000 per month

Utilities Rs. 8,000 per month

Rental income:

Rs.

Annual letting value of property 372,000

(including Rs. 120,000 for furniture and fixtures).

During the year property remained vacant for 4 months 8,000

Ground rent paid 200,000

Business income 200,000

Capital gains:

He was provided with a company maintained car of 800 cc, partly for business and partly for his

personal use. The cost of the car to the company was Rs. 500,000.

814___ Conceptual Approach to Taxes

Capital gains:

Cost of shares of unlisted companies (bought in 2000) 500,000

Sale proceeds of shares 600,000

Investments:

Investment in shares of listed companies 180,000

Premium paid for life annuity eligible u/s 63 45,000

Required:

Solution

Mr. A. Rehman - Resident

Computation of taxable income and tax liability

Tax year 2023

Rs. Rs.

INCOME FROM SALARY

Pay (Rs. 60,000 x 12 months) 720,000

Compute taxable income & tax liability of Mr. A. Rehman for the Tax year 2023. Prepare & present

all necessary workings.

Pay (Rs. 60,000 x 12 months) 720,000

House rent allowance (Rs. 27,000 x 12 months) 324,000

Utilities (Rs. 8,000 x 12 months) 96,000

Conveyance (500,000 x 5%) U/R 5 25,000

1,165,000

INCOME FROM BUSINESS (asumed under NTR) 200,000

INCOME FROM PROPERTY

814___ Conceptual Approach to Taxes